PUBLIC LAW 106-113—APPENDIX D 113 STAT. 1501A-287 year under this paragraph with respect to the failure), except as provided in subparagraph (C)(ii) of this paragraph; "(11) 8 percent of the penalty base, in the case of the 2nd such fiscal year; "(III) 16 percent of the penalty base, in the case of the 3rd such fiscal year; "(IV) 25 percent of the penalty base, in the case of the 4th such fiscal year; or "(V) 30 percent of the penalty base, in the case of the 5th or any subsequent such fiscal year. "(ii) The term 'penalty base' means, with respect to a failure of a State to comply with subparagraphs (A) and (B)(i) of section 454(27) during a fiscal year, the amount otherwise payable to the State under paragraph (1)(A) of this subsection for the preceding fiscal year. "(C)(i) The Secretary shall waive all penalties imposed against a State under this paragraph for any failure of the State to comply with subparagraphs (A) and (B)(i) of section 454(27) if the Secretary determines that, before April 1, 2000, the State has achieved such compliance. "(ii) If a State with respect to which a reduction is required to be made under this paragraph with respect to a failure to comply with subparagraphs (A) and (B)(i) of section 454(27) achieves such compliance on or after April 1, 2000, and on or before September 30, 2000, then the penalty amount applicable to the State shall be 1 percent of the penalty base with respect to the failure involved. "(D) The Secretary may not impose a penalty under this paragraph against a State for a fiscal year for which the amount otherwise payable to the State under paragraph (1)(A) of this subsection is reduced under paragraph (4) of this subsection for failure to comply with section 454(24)(A).". (b) INAPPLICABILITY OF PENALTY UNDER TANF PROGRAM. — Section 409(a)(8)(A)(i)(III) of such Act (42 U.S.C. 609(a)(8)(A)(i)(III)) is amended by striking "section 454(24)" and inserting "paragraph (24), or subparagraph (A) or (B)(i) of paragraph (27), of section 454". (c) EFFECTIVE DATE.— The amendments made by this section shall take effect on October 1, 1999. This Act may be cited as the "Departments of Labor, Health, and Human Services, and Education, and Related Agencies Appropriations Act, 2000".
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